BETHESDA, Md., Aug. 5,
2021 /PRNewswire/ -- Saul Centers,
Inc. (NYSE: BFS), an equity real estate investment trust ("REIT"),
announced its operating results for the quarter ended June 30,
2021 ("2021 Quarter"). Total revenue for the 2021 Quarter
increased to $60.0 million from
$53.2 million for the quarter
ended June 30, 2020 ("2020 Quarter"). Net income
increased to $16.1 million for
the 2021 Quarter from $10.2 million
for the 2020 Quarter. The Waycroft mixed-use development
opened in April 2020 and, as of
June 30, 2021, was 99% leased. Concurrent with the opening in
April 2020, interest, real estate
taxes and all other costs associated with the residential portion
of the property, including depreciation, began to be charged to
expense, while revenue continued to grow as occupancy increased. As
a result, net income for the 2021 Quarter was favorably impacted by
$2.1 million, compared to the 2020
Quarter, due to increased occupancy at The Waycroft. Net income
also increased from the 2020 Quarter due to (a) lower credit losses
on operating lease receivables and corresponding reserves
(collectively, $3.5 million) and (b)
higher capitalized interest ($0.5
million), primarily due to the Twinbrook Quarter development
project. Net income available to common stockholders
increased to $9.9 million
($0.42 per diluted share) for the
2021 Quarter from $5.5 million
($0.24 per diluted share) for
the 2020 Quarter.
Same property revenue increased $6.8
million (12.7%) and same property operating income increased
$5.9 million (14.9%) for the 2021
Quarter compared to the 2020 Quarter. We define same property
revenue as total revenue minus the revenue of properties not in
operation for the entirety of the comparable reporting
periods. We define same property operating income as net
income plus (a) interest expense, net and amortization of deferred
debt costs, (b) depreciation and amortization of lease costs,
(c) general and administrative expenses and (d) change in fair
value of derivatives minus (e) gains on sale of property and (f)
the results of properties which were not in operation for the
entirety of the comparable periods. Shopping Center same
property operating income for the 2021 Quarter totaled $33.6 million, a $3.7
million increase from the 2020 Quarter. Mixed-Use same
property operating income totaled $11.7 million, a $2.2 million increase from the 2020 Quarter.
The increase in Shopping Center same property operating income was
primarily the result of (a) lower credit losses on operating lease
receivables and corresponding reserves
(collectively, $2.8 million), (b) increased occupancy at
Ashbrook Marketplace, which opened in November 2019 ($0.4
million) and (c) higher percentage rent ($0.3 million). The increase in Mixed-Use same
property operating income was primarily the result of
(a) increased occupancy at The Waycroft, which opened in
April 2020 ($2.9 million) and (b) lower credit losses on
operating lease receivables and corresponding reserves
(collectively, $0.8 million),
partially offset by (c) lower base rent, exclusive of The
Waycroft ($1.2 million) and (d) lower
lease termination fees ($0.2
million). Reconciliations of (a) property revenue to
same property revenue and (b) net income to same property income
are attached to this press release.
As of June 30, 2021, 92.5% of the commercial portfolio was
leased, compared to 94.7% at June 30, 2020. On a same
property basis, 92.5% of the commercial portfolio was leased as of
June 30, 2021, compared to 94.7% at June 30, 2020.
As of June 30, 2021, the residential portfolio was 98.4%
leased compared to 67.7% at June 30, 2020. As of
June 30, 2021, excluding the Waycroft, the residential
portfolio was 97.7% leased compared to 95.3% at June 30,
2020.
For the six months ended June 30, 2021 ("2021 Period"),
total revenue increased to $118.7
million from $110.2 million
for the six months ended June 30, 2020 ("2020 Period").
Net income increased to $28.9 million
for the 2021 Period from $27.0
million for the 2020 Period. Net income available to
common stockholders increased to $17.4
million ($0.74 per diluted
share) for the 2021 Period compared to $16.0
million ($0.69 per diluted
share) for the 2020 Period. The increase in net income was
primarily due to (a) lower credit losses on operating lease
receivables and corresponding reserves (collectively, $2.5 million), (b) increased occupancy at
Ashbrook Marketplace, which opened in November 2019 ($0.9
million) and (c) higher percentage rent ($0.7 million), partially offset by (d) lower base
rent in the Mixed-Use Portfolio, exclusive of The Waycroft
($2.4 million).
Same property revenue increased $1.8
million (1.6%) and same property operating income increased
$0.7 million (0.9%) for the 2021
Period, compared to the 2020 Period. Shopping Center same
property operating income increased (5.4%) and mixed-use same
property operating income decreased (13.2%). Shopping Center
same property operating income increased primarily due to
(a) lower credit losses on operating lease receivables and
corresponding reserves (collectively, $2.3
million) and (b) increased occupancy at Ashbrook
Marketplace, which opened in November
2019 ($0.9 million). Mixed-use
same property operating income decreased primarily due to (a) lower
base rent ($2.4 million) and (b)
lower other revenue ($0.6 million), partially offset by (c) lower
credit losses on operating lease receivables and corresponding
reserves (collectively, $0.3
million).
Funds from operations ("FFO") available to common stockholders
and noncontrolling interests (after deducting preferred stock
dividends) was $26.0 million
($0.82 and $0.79 per basic and diluted share, respectively)
in the 2021 Quarter compared to $20.0 million ($0.64 per basic and diluted share) in the
2020 Quarter. FFO is a non-GAAP supplemental earnings measure
which the Company considers meaningful in measuring its operating
performance. A reconciliation of net income to FFO is
attached to this press release. The increase in FFO available
to common stockholders and noncontrolling interests was primarily
the result of (a) lower credit losses on operating lease
receivables and corresponding reserves (collectively, $3.5 million), (b) increased occupancy at
The Waycroft, which opened in April
2020 ($2.3 million), (c)
higher capitalized interest ($0.5
million), primarily due to the Twinbrook Quarter development
project and (d) increased occupancy at Ashbrook Marketplace,
which opened in November 2019
($0.4 million), partially offset
by (e) lower lease termination fees ($0.3
million).
FFO available to common stockholders and noncontrolling
interests (after deducting preferred stock dividends and the impact
of preferred stock redemptions) increased to $48.7 million ($1.54 and $1.50 per
basic and diluted share, respectively) in the 2021 Period from
$45.3 million ($1.45 per basic and diluted share) in the 2020
Period. FFO available to common stockholders and
noncontrolling interests increased primarily due to (a) lower
credit losses on operating lease receivables and corresponding
reserves (collectively, $2.5
million), (b) increased occupancy at The Waycroft, which
opened in April 2020 ($2.0 million) and (c) increased occupancy at
Ashbrook Marketplace, which opened in November 2019 ($0.9 million),
partially offset by (d) lower base rent in the Mixed-Use Portfolio,
exclusive of The Waycroft ($2.4 million).
On March 11, 2020, the World
Health Organization declared a novel strain of coronavirus
("COVID-19") a pandemic, and on March 13,
2020, the United States
declared a national emergency with respect to COVID-19. As a
result, the COVID-19 pandemic is negatively affecting almost every
industry directly or indirectly.
The actions taken by federal, state and local governments to
mitigate the spread of COVID-19 by ordering closure of nonessential
businesses and ordering residents to generally stay at home, and
subsequent phased re-openings, have resulted in many of our tenants
announcing mandated or temporary closures of their operations
and/or requesting adjustments to their lease terms. Experts
predict that the COVID-19 pandemic will trigger a period of global
economic slowdown or a global recession. COVID-19 could have
a material and adverse effect on or cause disruption to our
business or financial condition, results from operations, cash
flows and the market value and trading price of our securities.
While the Company's grocery store, pharmacy, bank and home
improvement store tenants generally remain fully open, many
restaurants are operating with reduced hours and/or limited indoor
seating, supplemented with delivery and curbside pick-up, and most
health, beauty supply and services, fitness centers, and other
non-essential businesses are re-opening with limited customer
capacity depending on location. As of July 31, 2021, payments
by tenants of contractual base rent and operating expense and real
estate tax recoveries totaled approximately 98% for the second
quarter. The Company is generally not charging late fees or
delinquent interest on past due payments and, in many cases, rent
deferral agreements have been negotiated to allow tenants temporary
relief where needed. For additional discussion of how the COVID-19
pandemic has impacted the Company's business, please see Part 1,
Item 2 (Management's Discussion and Analysis of Financial Condition
and Results of Operations) of our Quarterly Report on Form 10-Q for
the quarter ended June 30, 2021.
The following is a summary of the Company's consolidated total
collections of the first quarter, second quarter and July 2021 rent billings, including minimum rent,
operating expense recoveries, and real estate tax reimbursements,
as of July 31, 2021:
2021 first quarter
- 98% of 2021 first quarter total billings has been paid by our
tenants.
-
- 98% of retail
- 99% of office
- 99% of residential
- Additionally, rent deferral agreements comprising approximately
0.2% of 2021 first quarter total billings have been executed (or
15% of the total unpaid balance), none of which are with
anchor/national tenants. The executed deferrals typically cover
three months of rent and are generally scheduled to be paid during
2021 and 2022. As a condition to granted rent deferrals, we have
sought, and in some cases received, extended lease terms, or
waivers of certain adjacent use or common area restrictions.
2021 second quarter
- 98% of 2021 second quarter total billings has been paid by our
tenants.
-
- 97% of retail
- 98% of office
- 99% of residential
- Additionally, rent deferral agreements comprising approximately
0.2% of 2021 second quarter total billings have been executed (or
10% of the total unpaid balance), none of which are with
anchor/national tenants. These deferrals are structured similarly
to the first quarter deferrals.
July 2021
- 94% of July 2021 total billings
has been paid by our tenants.
-
- 93% of retail
- 93% of office
- 98% of residential
- Additionally, rent deferral agreements comprising less than
0.3% of July total billings have been executed (or 5% of the total
unpaid balance), none of which are with anchor/national tenants.
These deferrals are structured similarly to the first quarter and
second quarter deferrals.
Although we are and will continue to be actively engaged in rent
collection efforts related to uncollected rent, and we continue to
work with certain tenants who have requested rent deferrals, we can
provide no assurance that such efforts or our efforts in future
periods will be successful, particularly in the event that the
COVID-19 pandemic and restrictions intended to prevent its spread
continue for a prolonged period. As of June 30, 2021,
$3.2 million of deferred rents have
come due. Of the amounts that have come due, $3.1 million has been paid.
With cash balances of over $10.1 million and borrowing capacity of
approximately $203.8 million on
July 31, 2021, the Company believes that it has sufficient
liquidity and flexibility to meet the needs of the Company's
operations as the effects of the COVID-19 pandemic continue to
evolve.
Saul Centers, Inc. is a
self-managed, self-administered equity REIT headquartered in
Bethesda, Maryland, which
currently operates and manages a real estate portfolio of 61
properties which includes (a) 50 community and neighborhood
shopping centers and seven mixed-use properties with approximately
9.8 million square feet of leasable area and (b) four land and
development properties. Approximately 85% of the Saul Centers'
property operating income is generated by properties in the
metropolitan Washington,
DC/Baltimore area.
Safe Harbor Statement
Certain matters discussed within this press release may be
deemed to be forward-looking statements within the meaning of the
federal securities laws. For these statements, we claim the
protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of
1995. Although the Company believes the expectations
reflected in the forward-looking statements are based on reasonable
assumptions, it can give no assurance that its expectations will be
attained. These factors include, but are not limited to, the
risk factors described in our Annual Report on (i) Form 10-K for
the year ended December 31, 2020 and
(ii) our Quarterly Report on Form 10-Q for the quarter ended
June 30, 2021 and include the following: (i) general adverse
economic and local real estate conditions, (ii) the inability of
major tenants to continue paying their rent obligations due to
bankruptcy, insolvency or a general downturn in their business,
(iii) financing risks, such as the inability to obtain equity, debt
or other sources of financing or refinancing on favorable terms to
the Company, (iv) the Company's ability to raise capital by selling
its assets, (v) changes in governmental laws and regulations
and management's ability to estimate the impact of such changes,
(vi) the level and volatility of interest rates and management's
ability to estimate the impact thereof, (vii) the availability of
suitable acquisition, disposition, development and redevelopment
opportunities, and risks related to acquisitions not performing in
accordance with our expectations, (viii) increases in
operating costs, (ix) changes in the dividend policy for the
Company's common and preferred stock and the Company's ability to
pay dividends at current levels, (x) the reduction in the Company's
income in the event of multiple lease terminations by tenants or a
failure by multiple tenants to occupy their premises in a shopping
center, (xi) impairment charges, (xii) unanticipated changes
in the Company's intention or ability to prepay certain debt prior
to maturity and (xiii) an epidemic or pandemic (such as the
outbreak and worldwide spread of COVID-19), and the measures that
international, federal, state and local governments, agencies, law
enforcement and/or health authorities implement to address it,
which may (as with COVID-19) precipitate or exacerbate one or more
of the above-mentioned and/or other risks, and significantly
disrupt or prevent us from operating our business in the ordinary
course for an extended period. Given these uncertainties,
readers are cautioned not to place undue reliance on any
forward-looking statements that we make, including those in this
press release. Except as may be required by law, we make no
promise to update any of the forward-looking statements as a result
of new information, future events or otherwise. You should
carefully review the risks and risk factors included in (i) our
Annual Report on Form 10-K for the year ended December 31, 2020 and (ii) our Quarterly Report
on Form 10-Q for the quarter ended June 30, 2021.
Saul Centers,
Inc.
Consolidated
Balance Sheets
(Unaudited)
|
|
(Dollars in
thousands, except per share amounts)
|
June 30,
2021
|
|
December
31,
2020
|
Assets
|
|
|
|
Real estate
investments
|
|
|
|
Land
|
$
|
511,596
|
|
|
$
|
511,482
|
|
Buildings and
equipment
|
1,560,607
|
|
|
1,543,837
|
|
Construction in
progress
|
184,459
|
|
|
69,477
|
|
|
2,256,662
|
|
|
2,124,796
|
|
Accumulated
depreciation
|
(628,418)
|
|
|
(607,706)
|
|
|
1,628,244
|
|
|
1,517,090
|
|
Cash and cash
equivalents
|
14,857
|
|
|
26,856
|
|
Accounts receivable
and accrued income, net
|
59,743
|
|
|
64,917
|
|
Deferred leasing
costs, net
|
25,494
|
|
|
26,872
|
|
Other
assets
|
8,642
|
|
|
9,837
|
|
Total
assets
|
$
|
1,736,980
|
|
|
$
|
1,645,572
|
|
Liabilities
|
|
|
|
Notes
payable
|
$
|
801,947
|
|
|
$
|
827,603
|
|
Construction loan
payable
|
147,087
|
|
|
144,607
|
|
Revolving credit
facility payable
|
108,684
|
|
|
103,913
|
|
Term loan facility
payable
|
74,841
|
|
|
74,791
|
|
Accounts payable,
accrued expenses and other liabilities
|
29,688
|
|
|
24,384
|
|
Deferred
income
|
24,781
|
|
|
23,293
|
|
Dividends and
distributions payable
|
20,499
|
|
|
19,448
|
|
Total
liabilities
|
1,207,527
|
|
|
1,218,039
|
|
Equity
|
|
|
|
Preferred stock,
1,000,000 shares authorized:
|
|
|
|
Series D Cumulative
Redeemable, 30,000 shares issued and outstanding
|
75,000
|
|
|
75,000
|
|
Series E Cumulative
Redeemable, 44,000 shares issued and outstanding
|
110,000
|
|
|
110,000
|
|
Common stock, $0.01
par value, 40,000,000 shares authorized, 23,648,047 and 23,476,626
shares issued and outstanding, respectively
|
236
|
|
|
235
|
|
Additional paid-in
capital
|
427,347
|
|
|
420,625
|
|
Partnership units in
escrow
|
79,300
|
|
|
—
|
|
Distributions in
excess of accumulated net income
|
(249,612)
|
|
|
(241,535)
|
|
Total Saul Centers,
Inc. equity
|
442,271
|
|
|
364,325
|
|
Noncontrolling
interests
|
87,182
|
|
|
63,208
|
|
Total
equity
|
529,453
|
|
|
427,533
|
|
Total liabilities and
equity
|
$
|
1,736,980
|
|
|
$
|
1,645,572
|
|
|
The Notes to
Financial Statements are an integral part of these
statements.
|
Saul Centers,
Inc.
Consolidated
Statements of Operations
(In thousands, except
per share amounts)
|
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Revenue
|
(unaudited)
|
|
(unaudited)
|
Rental
revenue
|
$
|
58,818
|
|
|
$
|
52,002
|
|
|
$
|
116,575
|
|
|
$
|
107,418
|
|
Other
|
1,186
|
|
|
1,218
|
|
|
2,154
|
|
|
2,745
|
|
Total
revenue
|
60,004
|
|
|
53,220
|
|
|
118,729
|
|
|
110,163
|
|
Expenses
|
|
|
|
|
|
|
|
Property operating
expenses
|
7,524
|
|
|
6,410
|
|
|
16,210
|
|
|
13,446
|
|
Real estate
taxes
|
7,138
|
|
|
7,351
|
|
|
14,967
|
|
|
14,504
|
|
Interest expense, net
and amortization of deferred debt costs
|
11,657
|
|
|
12,019
|
|
|
23,646
|
|
|
21,613
|
|
Depreciation and
amortization of lease costs
|
12,637
|
|
|
12,600
|
|
|
25,385
|
|
|
23,881
|
|
General and
administrative
|
4,929
|
|
|
4,632
|
|
|
9,607
|
|
|
9,682
|
|
Total
expenses
|
43,885
|
|
|
43,012
|
|
|
89,815
|
|
|
83,126
|
|
Net
Income
|
16,119
|
|
|
10,208
|
|
|
28,914
|
|
|
27,037
|
|
Noncontrolling
interests
|
|
|
|
|
|
|
|
Income attributable to
noncontrolling interests
|
(3,373)
|
|
|
(1,880)
|
|
|
(5,906)
|
|
|
(5,445)
|
|
Net income
attributable to Saul Centers, Inc.
|
12,746
|
|
|
8,328
|
|
|
23,008
|
|
|
21,592
|
|
Preferred stock
dividends
|
(2,799)
|
|
|
(2,798)
|
|
|
(5,597)
|
|
|
(5,596)
|
|
Net income
available to common stockholders
|
$
|
9,947
|
|
|
$
|
5,530
|
|
|
$
|
17,411
|
|
|
$
|
15,996
|
|
Per share net
income available to common stockholders
|
|
|
|
|
|
|
|
Basic and
diluted
|
$
|
0.42
|
|
|
$
|
0.24
|
|
|
$
|
0.74
|
|
|
$
|
0.69
|
|
Reconciliation of net
income to FFO available to common stockholders and
noncontrolling
interests (1)
|
|
Three Months Ended
June 30,
|
|
Six Months Ended June
30,
|
(In thousands,
except per share amounts)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net income
|
$
|
16,119
|
|
|
$
|
10,208
|
|
|
$
|
28,914
|
|
|
$
|
27,037
|
|
Add:
|
|
|
|
|
|
|
|
Real estate
depreciation and amortization
|
12,637
|
|
|
12,600
|
|
|
25,385
|
|
|
23,881
|
|
FFO
|
28,756
|
|
|
22,808
|
|
|
54,299
|
|
|
50,918
|
|
Subtract:
|
|
|
|
|
|
|
|
Preferred stock
dividends
|
(2,799)
|
|
|
(2,798)
|
|
|
(5,597)
|
|
|
(5,596)
|
|
FFO available to common
stockholders and noncontrolling interests
|
$
|
25,957
|
|
|
$
|
20,010
|
|
|
$
|
48,702
|
|
|
$
|
45,322
|
|
Weighted average
shares and units:
|
|
|
|
|
|
|
|
Basic
|
31,591
|
|
|
31,240
|
|
|
31,542
|
|
|
31,216
|
|
Diluted
(2)
|
33,008
|
|
|
31,240
|
|
|
32,487
|
|
|
31,218
|
|
Basic FFO per share
available to common stockholders and noncontrolling
interests
|
$
|
0.82
|
|
|
$
|
0.64
|
|
|
$
|
1.54
|
|
|
$
|
1.45
|
|
Diluted FFO per share
available to common stockholders and noncontrolling
interests
|
$
|
0.79
|
|
|
$
|
0.64
|
|
|
$
|
1.50
|
|
|
$
|
1.45
|
|
|
|
(1)
|
The National
Association of Real Estate Investment Trusts (NAREIT) developed FFO
as a relative non-GAAP financial measure of performance of an
equity REIT in order to recognize that income-producing real estate
historically has not depreciated on the basis determined under
GAAP. FFO is defined by NAREIT as net income, computed in
accordance with GAAP, plus real estate depreciation and
amortization, and excluding impairment charges on real estate
assets and gains or losses from real estate dispositions. FFO does
not represent cash generated from operating activities in
accordance with GAAP and is not necessarily indicative of cash
available to fund cash needs, which is disclosed in the Company's
Consolidated Statements of Cash Flows for the applicable periods.
There are no material legal or functional restrictions on the use
of FFO. FFO should not be considered as an alternative to net
income, its most directly comparable GAAP measure, as an indicator
of the Company's operating performance, or as an alternative to
cash flows as a measure of liquidity. Management considers FFO a
meaningful supplemental measure of operating performance because it
primarily excludes the assumption that the value of the real estate
assets diminishes predictably over time (i.e. depreciation), which
is contrary to what the Company believes occurs with its assets,
and because industry analysts have accepted it as a performance
measure. FFO may not be comparable to similarly titled measures
employed by other REITs.
|
(2)
|
Beginning March 5,
2021, fully diluted shares and units includes 1,416,071 limited
partnership units that are held in escrow related to the
contribution of Twinbrook Quarter to the Company by the B. F. Saul
Real Estate Investment Trust. The units will remain in escrow until
the conditions of the Twinbrook Contribution Agreement, as amended,
are satisfied.
|
Reconciliation of
revenue to same property revenue (3)
|
(in
thousands)
|
|
Three months ended
June 30,
|
|
Six months ended June
30,
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
(unaudited)
|
|
(unaudited)
|
Total
revenue
|
|
$
|
60,004
|
|
|
$
|
53,220
|
|
|
$
|
118,729
|
|
|
$
|
110,163
|
|
Less: Acquisitions,
dispositions and development properties
|
|
—
|
|
|
—
|
|
|
(7,098)
|
|
|
(299)
|
|
Total same property
revenue
|
|
$
|
60,004
|
|
|
$
|
53,220
|
|
|
$
|
111,631
|
|
|
$
|
109,864
|
|
|
|
|
|
|
|
|
|
|
Shopping
Centers
|
|
$
|
42,006
|
|
|
$
|
38,329
|
|
|
$
|
84,451
|
|
|
$
|
79,900
|
|
Mixed-Use
properties
|
|
17,998
|
|
|
14,891
|
|
|
27,180
|
|
|
29,964
|
|
Total same property
revenue
|
|
$
|
60,004
|
|
|
$
|
53,220
|
|
|
$
|
111,631
|
|
|
$
|
109,864
|
|
|
|
|
|
|
|
|
|
|
Total Shopping
Center revenue
|
|
$
|
42,006
|
|
|
$
|
38,329
|
|
|
$
|
84,451
|
|
|
$
|
79,900
|
|
Less: Shopping Center
acquisitions, dispositions and development properties
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total same Shopping
Center revenue
|
|
$
|
42,006
|
|
|
$
|
38,329
|
|
|
$
|
84,451
|
|
|
$
|
79,900
|
|
|
|
|
|
|
|
|
|
|
Total Mixed-Use
property revenue
|
|
$
|
17,998
|
|
|
$
|
14,891
|
|
|
$
|
34,278
|
|
|
$
|
30,263
|
|
Less: Mixed-Use
acquisitions, dispositions and development properties
|
|
—
|
|
|
—
|
|
|
(7,098)
|
|
|
(299)
|
|
Total same Mixed-Use
property revenue
|
|
$
|
17,998
|
|
|
$
|
14,891
|
|
|
$
|
27,180
|
|
|
$
|
29,964
|
|
|
|
(3)
|
Same property revenue
is a non-GAAP financial measure of performance that improves the
comparability of reporting periods by excluding the results of
properties that were not in operation for the entirety of the
comparable reporting periods. Same property revenue adjusts
property revenue by subtracting the revenue of properties not in
operation for the entirety of the comparable reporting
periods. Same property revenue is a measure of the operating
performance of the Company's properties but does not measure the
Company's performance as a whole. Same property revenue
should not be considered as an alternative to total revenue, its
most directly comparable GAAP measure, as an indicator of the
Company's operating performance. Management considers same
property revenue a meaningful supplemental measure of operating
performance because it is not affected by the cost of the Company's
funding, the impact of depreciation and amortization expenses,
gains or losses from the acquisition and sale of operating real
estate assets, general and administrative expenses or other gains
and losses that relate to ownership of the Company's
properties. Management believes the exclusion of these items
from same property revenue is useful because the resulting measure
captures the actual revenue generated and actual expenses incurred
by operating the Company's properties. Other REITs may use
different methodologies for calculating same property
revenue. Accordingly, the Company's same property revenue may
not be comparable to those of other REITs.
|
Reconciliation of net
income to same property operating income (4)
|
|
Three Months Ended
June 30,
|
|
Six Months Ended June
30,
|
(In
thousands)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
(unaudited)
|
|
(unaudited)
|
Net
income
|
$
|
16,119
|
|
|
$
|
10,208
|
|
|
$
|
28,914
|
|
|
$
|
27,037
|
|
Add: Interest
expense, net and amortization of deferred debt costs
|
11,657
|
|
|
12,019
|
|
|
23,646
|
|
|
21,613
|
|
Add: Depreciation and
amortization of lease costs
|
12,637
|
|
|
12,600
|
|
|
25,385
|
|
|
23,881
|
|
Add: General and
administrative
|
4,929
|
|
|
4,632
|
|
|
9,607
|
|
|
9,682
|
|
Property operating
income
|
45,342
|
|
|
39,459
|
|
|
87,552
|
|
|
82,213
|
|
Less: Acquisitions,
dispositions and development properties
|
—
|
|
|
—
|
|
|
(4,055)
|
|
|
566
|
|
Total same property
operating income
|
$
|
45,342
|
|
|
$
|
39,459
|
|
|
$
|
83,497
|
|
|
$
|
82,779
|
|
|
|
|
|
|
|
|
|
Shopping
Centers
|
$
|
33,635
|
|
|
$
|
29,965
|
|
|
$
|
66,004
|
|
|
$
|
62,614
|
|
Mixed-Use
properties
|
11,707
|
|
|
9,494
|
|
|
17,493
|
|
|
20,165
|
|
Total same property
operating income
|
$
|
45,342
|
|
|
$
|
39,459
|
|
|
$
|
83,497
|
|
|
$
|
82,779
|
|
|
|
|
|
|
|
|
|
Shopping Center
operating income
|
$
|
33,635
|
|
|
$
|
29,965
|
|
|
$
|
66,004
|
|
|
$
|
62,614
|
|
Less: Shopping Center
acquisitions, dispositions and development properties
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Total same Shopping
Center operating income
|
$
|
33,635
|
|
|
$
|
29,965
|
|
|
$
|
66,004
|
|
|
$
|
62,614
|
|
|
|
|
|
|
|
|
|
Mixed-Use property
operating income
|
$
|
11,707
|
|
|
$
|
9,494
|
|
|
$
|
21,548
|
|
|
$
|
19,599
|
|
Less: Mixed-Use
acquisitions, dispositions and development properties
|
—
|
|
|
—
|
|
|
(4,055)
|
|
|
566
|
|
Total same Mixed-Use
property operating income
|
$
|
11,707
|
|
|
9,494
|
|
|
$
|
17,493
|
|
|
$
|
20,165
|
|
|
|
(4)
|
Same property
operating income is a non-GAAP financial measure of performance
that improves the comparability of reporting periods by excluding
the results of properties that were not in operation for the
entirety of the comparable reporting periods. Same property
operating income adjusts property operating income by subtracting
the results of properties that were not in operation for the
entirety of the comparable periods. Same property operating
income is a measure of the operating performance of the Company's
properties but does not measure the Company's performance as a
whole. Same property operating income should not be
considered as an alternative to property operating income, its most
directly comparable GAAP measure, as an indicator of the Company's
operating performance. Management considers same property
operating income a meaningful supplemental measure of operating
performance because it is not affected by the cost of the Company's
funding, the impact of depreciation and amortization expenses,
gains or losses from the acquisition and sale of operating real
estate assets, general and administrative expenses or other gains
and losses that relate to ownership of the Company's
properties. Management believes the exclusion of these items
from property operating income is useful because the resulting
measure captures the actual revenue generated and actual expenses
incurred by operating the Company's properties. Other REITs
may use different methodologies for calculating same property
operating income. Accordingly, same property operating income
may not be comparable to those of other REITs.
|
View original
content:https://www.prnewswire.com/news-releases/saul-centers-inc-reports-second-quarter-2021-earnings-301349819.html
SOURCE Saul Centers, Inc.